VSE (NASDAQ:VSEC) Trading Up 13.3% Following Earnings Beat

Key Points

• Shares rose 13.3% after VSE beat expectations—Q revenue $324.58M vs. $309.19M expected and EPS $1.17 vs. $0.93—while revenue grew 26.8% year-over-year.
• Analysts are broadly positive, with a consensus "Buy" rating and a $223.13 consensus price target, and several firms issuing or raising buy/outperform/strong-buy opinions.
• Institutional investors own 91.54% of the company, with recent notable stake increases by Emerald Mutual and Emerald Advisers, indicating strong institutional conviction.

VSE Corporation (NASDAQ:VSEC - Get Free Report)'s stock price was up 13.3% on Wednesday following a better than expected earnings announcement. The stock traded as high as $200.93 and last traded at $201.0550. Approximately 147,750 shares traded hands during mid-day trading, a decline of 77% from the average daily volume of 639,710 shares. The stock had previously closed at $177.43.

The construction company reported $1.17 EPS for the quarter, beating the consensus estimate of $0.93 by $0.24. The firm had revenue of $324.58 million during the quarter, compared to analysts' expectations of $309.19 million. VSE had a net margin of 1.84% and a return on equity of 7.60%. The business's quarterly revenue was up 26.8% compared to the same quarter last year. During the same period in the prior year, the company earned $0.78 EPS.

VSE Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Wednesday, April 29th. Investors of record on Wednesday, April 15th were paid a dividend of $0.10 per share. This represents a $0.40 annualized dividend and a yield of 0.2%. The ex-dividend date was Wednesday, April 15th. VSE's dividend payout ratio is presently 44.94%.

Analysts Set New Price Targets

Several equities research analysts have issued reports on VSEC shares. Jefferies Financial Group started coverage on shares of VSE in a report on Tuesday. They issued a "buy" rating and a $210.00 price target on the stock. William Blair reissued an "outperform" rating on shares of VSE in a report on Thursday, March 12th. Royal Bank Of Canada lowered their price target on shares of VSE from $250.00 to $220.00 and set an "outperform" rating on the stock in a report on Friday, May 1st. B. Riley Financial boosted their price target on shares of VSE from $208.00 to $258.00 and gave the company a "buy" rating in a report on Monday, February 2nd. Finally, Truist Financial raised shares of VSE to a "strong-buy" rating in a report on Friday, May 1st. Two equities research analysts have rated the stock with a Strong Buy rating, eight have assigned a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Buy" and a consensus price target of $223.13.

Institutional Investors Weigh In On VSE

Several large investors have recently made changes to their positions in the company. Emerald Mutual Fund Advisers Trust grew its holdings in shares of VSE by 16.4% in the 1st quarter. Emerald Mutual Fund Advisers Trust now owns 195,915 shares of the construction company's stock worth $36,127,000 after purchasing an additional 27,563 shares during the last quarter. Emerald Advisers LLC grew its holdings in shares of VSE by 12.6% in the 1st quarter. Emerald Advisers LLC now owns 314,789 shares of the construction company's stock worth $58,047,000 after purchasing an additional 35,246 shares during the last quarter. Teachers Retirement System of The State of Kentucky bought a new stake in shares of VSE in the 1st quarter worth about $1,276,000. New York State Common Retirement Fund grew its holdings in shares of VSE by 11.1% in the 4th quarter. New York State Common Retirement Fund now owns 274,865 shares of the construction company's stock worth $47,488,000 after purchasing an additional 27,448 shares during the last quarter. Finally, Ellevest Inc. bought a new stake in shares of VSE in the 4th quarter worth about $323,000. Institutional investors own 91.54% of the company's stock.

VSE Trading Up 12.9%

The company's fifty day moving average price is $198.50 and its two-hundred day moving average price is $190.55. The company has a current ratio of 3.76, a quick ratio of 1.43 and a debt-to-equity ratio of 0.20. The firm has a market cap of $5.62 billion, a P/E ratio of 226.29, a price-to-earnings-growth ratio of 1.54 and a beta of 1.25.

VSE Company Profile

VSE Corporation NASDAQ: VSEC is a provider of aftermarket distribution and supply chain management services serving both government and commercial markets. The company's solutions span a wide range of industries, with particular emphasis on defense, aerospace and transportation. VSE's core mission is to ensure mission readiness by delivering critical parts, maintenance and technical support for equipment throughout its lifecycle.

Through its Distribution Services segment, VSE sources, markets and distributes replacement parts and components for commercial truck, bus, rail and specialty vehicle applications.

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